In a Transformation Process, People Are Considered to Be Inputs

question 38

Multiple Choice

In a transformation process, people are considered to be inputs because they ________.

• A)are material beings
• B)are costly
• C)perform tasks that are needed to create outputs
• D)have knowledge and information

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Prepaid Insurance

Payments made in advance for insurance services, which is recorded as an asset on the balance sheet and expensed over the period the insurance coverage is applicable.

Adjusting Journal Entry

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Insurance Premium

The amount of money an individual or business pays for an insurance policy, which provides financial protection against losses.